Which of the Following Statements Is Not in Accordance with AASB

question 19

Multiple Choice

Which of the following statements is not in accordance with AASB 124 "Related Party Disclosures"?

• A) A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged.
• B) If there have been transactions between related parties, an entity shall disclose the nature of the related party relationship as well as information about the transactions and outstanding balances necessary for an understanding of the potential effect of the relationship on the financial statements.
• C) Transactions between the reporting entity and its key management personnel are deemed material.
• D) Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
• E) In AASB 124 "Related Party Disclosures", two entities having a director in common are assumed related parties.

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Definitions:

Membranes

Thin layers of tissue that cover surfaces, line cavities, or separate organs or spaces within the body.

PROM

Prelabor rupture of membranes; a condition in which the amniotic sac breaks before labor begins.

Cesarean Section

A surgical procedure used to deliver a baby through incisions in the abdomen and uterus when vaginal delivery is not possible or safe.

Stillborn

Referring to an infant born without signs of life at or after 24 weeks of pregnancy.